Global investment giant snaps up Boohoo shares to become second largest backer

A global investment giant has become the second largest shareholder in Boohoo after it snapped up shares in the Manchester-headquartered fashion group.

JP Morgan has acquired a 5.1% stake in the group, according to newly-filed documents with the London Stock Exchange. The move means it is now the largest institutional investor in the group.

T. Rowe Price International is now the third largest investor, having slashed its stake from 9.7% to 5% in August.

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Boohoo's largest single shareholder remains co-founder Mahmud Kamani.

Other mayor investors in Boohoo include Norges Bank Investment Management, Invesco Advisers, Inc and Jupiter Asset Management Ltd.

Influencer Molly-Mae Hague has created lines for PrettyLittleThing, which is part of the wider Boohoo group (PrettyLittleThing)

The move comes after higher returns and cost-of-living pressures on customer spending led to Boohoo falling to a loss and its sales slumping during the first half of its financial year.

The group made a pre-tax loss of £15.2m for the six months to August 31, 2022, compared to a £24.6m profit during the same period in 2021.

Boohoo also reported a 10% drop in its revenue to £882.4m.

Models walk the runway for the Boohoo X Kourtney Kardashian fashion show during September 2022 New York Fashion Week (Getty Images for NYFW: The Shows)

The group recently announced Kourtney Kardashian Barker as its newest ambassador with a focus on sustainability.

Boohoo said the entertainment personality and the CEO and founder of Poosh will release two collections that have been created "in tandem with a journey of investigation into opportunities for creating a more sustainable fashion future".

The news came after it was announced in July that eco-friendly and sustainability claims made by ASOS, Boohoo and George at Asda are to be investigated by the Competition and Markets Authority (CMA).

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